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Unformatted text preview: C. Sales price per unit less total variable cost per unit . Problem ( 60 points ) 1 The following information describes a product expected to be produced and sold by Hadley Company: Required: (a) Calculate the contribution margin ratio. (80-32) / 80 = 0.6 (b) Calculate the break-even point in dollar sales. 630,000 / 0.6 = 1,050,000 (c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000? (630,000 + 120,000) / 0.6 = 1,250,000...
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This note was uploaded on 07/10/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.
- Spring '09